How to Get an SBA Loan — Study Guide
HOW TO GET AN SBA LOAN
Study Guide
SBA 7(a) Loan Program | $100,000 Business Plan Template | What Lenders Want to See | How to Get
Approved
Note: Card terms, rewards rates, and tier requirements may change. Verify current offers directly with the issuer
before applying.
Bundle 4: The SBA Accelerator
© 2026 Darrell E. Brown Jr. All rights reserved.
March 2026
© 2026 Darrell E. Brown Jr. All rights reserved. | Page 1
, How to Get an SBA Loan — Study Guide
Part 1: What Is an SBA Loan?
1.1 The Basics
An SBA loan is a business loan issued by a bank or approved lender and partially guaranteed
by the U.S. Small Business Administration. The SBA does not lend money directly. Instead, it
guarantees a portion of the loan (up to 85% on loans of $150,000 or less), which reduces the
lender's risk. This means the lender can offer you better terms: lower interest rates, longer
repayment periods, and smaller down payments than a traditional bank loan.
Think of it this way: if you walk into a bank and ask for $100,000 as a brand-new business, they
will probably say no. But if the SBA tells the bank, "We will cover up to 85% of the loss if this
person defaults," the bank is much more willing to say yes.
1.2 What Can SBA Loans Be Used For?
SBA 7(a) loans --- the most common type --- can be used for almost any legitimate business
purpose. Here are the most common uses:
Use of Funds Examples
Working Capital payroll, rent, utilities, supplies. This is
the cash your business needs to survive until revenue Cover operating expenses during startup,
covers costs.
Equipment & Vehicles restaurant equipment, medical
devices --- any equipment your business needs to Trucks, machinery, computers, tools,
operate.
Real Estate payments on buildings. Leasehold
Purchase or lease commercial property. Down
improvements (renovations to a rented space).
Inventory & Supplies materials, office supplies,
Stock up on products for resale, raw
packaging materials.
Website, digital marketing, print materials, direct mail
Marketing & Advertising participation.
campaigns, trade show
Technology & Software CRM systems, accounting
software, industry-specific tools, cybersecurity, cloud
infrastructure.
Debt Refinancing with a lower-rate SBA loan. Pay off existing high-interest business debt
Business Acquisition franchise. Buy out a partner. Purchase an existing business. Fund a
Professional Services Attorney, CPA, consultant,
licensing, insurance, compliance setup.
The key takeaway: SBA 7(a) loans can be used for virtually any business --- trucking,
restaurants, consulting, real estate, healthcare, technology, education, manufacturing, retail,
services, and more. If you have a legitimate for-profit business operating in the United States,
you can apply.
© 2026 Darrell E. Brown Jr. All rights reserved. | Page 2
, How to Get an SBA Loan — Study Guide
1.3 What SBA Loans Cannot Be Used For
SBA loans cannot be used for: speculation or investment in stocks/real estate not related to the
business, lending money to others, paying off delinquent federal taxes or student loans, funding
illegal activities, paying owners for work not yet performed, or funding businesses in ineligible
industries (gambling, lending, multi-level marketing, some speculative real estate).
© 2026 Darrell E. Brown Jr. All rights reserved. | Page 3
HOW TO GET AN SBA LOAN
Study Guide
SBA 7(a) Loan Program | $100,000 Business Plan Template | What Lenders Want to See | How to Get
Approved
Note: Card terms, rewards rates, and tier requirements may change. Verify current offers directly with the issuer
before applying.
Bundle 4: The SBA Accelerator
© 2026 Darrell E. Brown Jr. All rights reserved.
March 2026
© 2026 Darrell E. Brown Jr. All rights reserved. | Page 1
, How to Get an SBA Loan — Study Guide
Part 1: What Is an SBA Loan?
1.1 The Basics
An SBA loan is a business loan issued by a bank or approved lender and partially guaranteed
by the U.S. Small Business Administration. The SBA does not lend money directly. Instead, it
guarantees a portion of the loan (up to 85% on loans of $150,000 or less), which reduces the
lender's risk. This means the lender can offer you better terms: lower interest rates, longer
repayment periods, and smaller down payments than a traditional bank loan.
Think of it this way: if you walk into a bank and ask for $100,000 as a brand-new business, they
will probably say no. But if the SBA tells the bank, "We will cover up to 85% of the loss if this
person defaults," the bank is much more willing to say yes.
1.2 What Can SBA Loans Be Used For?
SBA 7(a) loans --- the most common type --- can be used for almost any legitimate business
purpose. Here are the most common uses:
Use of Funds Examples
Working Capital payroll, rent, utilities, supplies. This is
the cash your business needs to survive until revenue Cover operating expenses during startup,
covers costs.
Equipment & Vehicles restaurant equipment, medical
devices --- any equipment your business needs to Trucks, machinery, computers, tools,
operate.
Real Estate payments on buildings. Leasehold
Purchase or lease commercial property. Down
improvements (renovations to a rented space).
Inventory & Supplies materials, office supplies,
Stock up on products for resale, raw
packaging materials.
Website, digital marketing, print materials, direct mail
Marketing & Advertising participation.
campaigns, trade show
Technology & Software CRM systems, accounting
software, industry-specific tools, cybersecurity, cloud
infrastructure.
Debt Refinancing with a lower-rate SBA loan. Pay off existing high-interest business debt
Business Acquisition franchise. Buy out a partner. Purchase an existing business. Fund a
Professional Services Attorney, CPA, consultant,
licensing, insurance, compliance setup.
The key takeaway: SBA 7(a) loans can be used for virtually any business --- trucking,
restaurants, consulting, real estate, healthcare, technology, education, manufacturing, retail,
services, and more. If you have a legitimate for-profit business operating in the United States,
you can apply.
© 2026 Darrell E. Brown Jr. All rights reserved. | Page 2
, How to Get an SBA Loan — Study Guide
1.3 What SBA Loans Cannot Be Used For
SBA loans cannot be used for: speculation or investment in stocks/real estate not related to the
business, lending money to others, paying off delinquent federal taxes or student loans, funding
illegal activities, paying owners for work not yet performed, or funding businesses in ineligible
industries (gambling, lending, multi-level marketing, some speculative real estate).
© 2026 Darrell E. Brown Jr. All rights reserved. | Page 3
